Reps investigates $7bn annual port revenue loss

The House of Representatives unveiled plans on Tuesday to investigate over $7 billion in revenue being lost annually to inefficiencies and poor management of the nation’s ports.

The resolution was passed as a sequel to the adoption of a motion co-sponsored by the Majority Leader, Hon. Julius Ihonbvere, and Hon. Ibrahim Isiaka, who frowned at the low patronage of Nigerian ports.

While noting that Nigeria’s seaports receive barely 10 per cent of West African imports out of 60 per cent destined for Nigeria, while others are lost to neighbouring countries, the lawmakers urged the House to carry out a comprehensive investigation to unravel the gaps and opportunities lost by the country annually.

In his lead debate, Hon. Ihonbvere said the maritime sector is crucial for the Nigerian economy’s survival but lamented the underutilised seaports, which can increase the nation’s revenue and indeed the national gross domestic product (GDP).

He said, “Nigeria’s seaports receive barely 10% of West African imports out of 60 per cent destined for Nigeria, a significant economic loss due to poor management and inefficiencies estimated to cost $7 billion annually.

“Most ships bringing goods to Nigeria prefer to go to other ports rather than Nigerian ports. Indeed, the Benin Republic benefits from Nigeria’s large market, and while Cotonou remains a popular importer’s haven, huge trade cargoes are lost to Togo and other neighbouring countries from where they are offloaded and transshipped to Nigeria due to poor shipping connectivity and shallow drafts of the port channels, which lead to trade cargo losses estimated to be N250 billion in 2016 alone.”

He questions why the nation is unable to provide adequate infrastructure and reduce pressure on Lagos ports and why the Calabar, Port Harcourt, Warri, and Koko ports cannot be developed as a haven for importers in the region.

According to him, the lack of adequate infrastructure and capacity in the growing cargo and maritime business is a significant issue.

He said Nigeria’s Apapa Port lost West Africa’s leading position due to congestion and poor-quality services to shippers. Port of Lomé, with a capacity of 1.1 million twenty-foot containers, overtook Lagos Port due to modernization reforms which tripled its capacity from 311,500 containers to 3.1 million, thus making ‘Togo’s Port of Lomé a regional transit hub;

He said, ” Nigeria’s Apapa Port, Lagos, which handles about 1 million TEU annually, lost 30 per cent of its container traffic over five years due to several factors bedevilling its inability to deliver efficient services to cargo owners; this explains why Nigerian ports have remained inefficient over the years.

“Nigeria’s major seaports in Lagos do not have deep draughts to handle bigger vessels; while modern seaports in Port Lomé have a depth of 16.60 metres and capacity to accommodate third-generation ships, Apapa Port operates with a 13,5-meter draught that can only allow vessels with about 4,000 TEUs of containers to call the port.”.

To this end, the House mandated the joint committees on ports and harbours, national planning and economic development, maritime safety education and administration, and the Nigerian Shippers’ Council to investigate the gaps affecting the full realisation of the economic advantage of ports and harbours and other blue economies in Nigeria.

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